TX
Texas House Bill HB206

Texas 2021 - 87th Regular

Texas House Bill HB206

Caption

Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.

Impact

If enacted, HB 206 would significantly reshape aspects of consumer credit law in Texas. The changes would affect how credit services organizations operate by imposing stricter regulations on how credit is obtained and managed. This includes limiting the refinancing of specific loan types and ensuring that all transactions comply with established income verification processes. The bill's provisions aim to curtail potentially harmful lending practices while making the terms of loans clearer and more transparent for consumers, thereby aiming to reduce predatory lending behaviors.

Summary

House Bill 206 seeks to amend existing regulations surrounding credit services organizations that facilitate extensions of consumer credit. The bill introduces several key definitions, clarifying terms related to consumer credit transactions and reinforcing the regulatory framework for credit access businesses. A central aspect of the bill is to enhance consumer protection by requiring strict disclosures regarding interest rates, fees, and the terms of loans, ensuring that consumers are informed before engaging in credit transactions. Additionally, the bill modifies the licensing process for credit services organizations, necessitating detailed applications and ongoing reporting to the Finance Commission of Texas.

Contention

While supporters argue that these amendments are necessary for consumer protection and creating a more transparent lending environment, there are concerns from some stakeholders about the potential for increased operational burdens on credit service organizations. Critics of the bill may view these regulations as overly restrictive, potentially limiting access to credit for certain consumer segments. The ability of municipalities to enact more stringent regulations remains intact, which could lead to a varied landscape of credit services laws across different jurisdictions within Texas.

Companion Bills

No companion bills found.

Previously Filed As

TX HB297

Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.

TX HB2256

Relating to a restriction on total charges charged for extensions of consumer credit that a credit services organization obtains for a consumer or assists a consumer in obtaining.

TX HB1384

Relating to a restriction on total charges charged for certain extensions of consumer credit that are facilitated by credit access businesses and entered into by consumers residing in disaster areas.

TX SB895

Relating to the regulation of money services businesses; creating a criminal offense; creating administrative penalties; authorizing the imposition of a fee.

TX SB2245

Relating to the regulation of earned wage access services; creating a criminal offense; providing an administrative penalty; authorizing a fee.

TX SB224

Relating to catalytic converters, including criminal conduct involving catalytic converters; providing an administrative penalty; creating a criminal offense; increasing a criminal penalty; increasing a fee.

TX HB4598

Relating to catalytic converters, including criminal conduct involving catalytic converters; providing an administrative penalty; creating a criminal offense; increasing a criminal penalty; increasing a fee.

TX SB1371

Relating to the regulation of consumer credit transactions and the regulatory authority of the consumer credit commissioner; changing a fee.

TX HB3275

Relating to the regulation of consumer credit transactions and the regulatory authority of the consumer credit commissioner; changing a fee.

TX SB1427

Relating to certain criminal conduct and organizations that threaten the security of this state and its residents and borders; increasing criminal penalties.

Similar Bills

TX HB768

Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.

TX HB3047

Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.

TX HB297

Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.

TX HB1258

Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.

TX HB242

Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.

TX HB1134

Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.

TX HB2808

Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.

TX SB1716

Relating to extensions of consumer credit a credit services organization obtains for a consumer or assists a consumer in obtaining; providing a civil penalty.